Hi,
If I were you if you are finding the timeout effective I'd stick with that. Puppies of his age really want attention so withdrawal of attention as a result of undesirable behaviour is a really good way of teaching him that it's not acceptable.
Personally I'd scrap the "bite" thing as there are kinder and more effective ways of correcting a behaviour.
Best of luck and let us know how you get on.
Your little pup sounds a sweetie. What is his name?

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